With current prices, Ivanhoe’s OT mine to produce copper at negative costs
TSX- and NYSE-listed Ivanhoe Mines’ giant Oyu Tolgoi mine in Mongolia will produce copper at negative cash costs at current gold and silver prices, the company said on Monday. Further, precious metals will contribute an average of 44% to the mine’s revenue for the first five years if current prices hold. Gold surged to new record highs, approaching $1 900/oz on Monday, while silver climbed to $43.58/oz. “Revenues from gold and silver will have a significant positive effect on lowering the average cash cost to produce a pound of copper during the first five years of mining at Oyu Tolgoi,” Ivanhoe CEO Robert Friedland said in a release.The company plugged a $1 850/oz gold price, $42/oz for silver and US$4.00/lb copper price into its May 2010 integrated development plan to determine negative total cash costs of $0.07 to produce a pound of payable copper in the first five years of production.
Ivanhoe announced earlier this month that it had started prestripping at Oyu Tolgoi’s Phase 1 openpit.
The mine is expected to produce 650 000 oz of gold, three-million ounces of silver and 1.2-billion pounds of copper yearly in its first ten years of commercial operation, with initial output in late 2012.
Edited by: Creamer Media Reporter
Ivanhoe announced earlier this month that it had started prestripping at Oyu Tolgoi’s Phase 1 openpit.
The mine is expected to produce 650 000 oz of gold, three-million ounces of silver and 1.2-billion pounds of copper yearly in its first ten years of commercial operation, with initial output in late 2012.
Edited by: Creamer Media Reporter
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